The Fortress Investment Group became the first American hedge fund and private equity firm to report quarterly earnings Tuesday, and the disclosures highlighted the difficulties the public markets have in dealing with businesses whose income streams are volatile and difficult to predict. Fortress’ stock fell 4.4 percent to $28.90 a share after it reported $62 million in net income for the first quarter of 2007, a drop from about $130 million in the comparable period last year. The company’s revenue rose 13 percent, to $416.3 million.
The company said its revenue growth was sapped by rising costs, including expenses related to its recent initial public offering.
Just wait until the inevitable *bad* quarter...